Matthew Pack, group chief executive of Holiday Extras, led the buyout
Holiday Extras has announced the completion of a management buyout which values the company at close to £100 million and places 55 per cent of the company’s equity into an employee benefit trust.
Natwest, a longstanding financial partner of Holiday Extras, funded 50 per cent of the £30 million transaction, with the remainder covered by medium term shareholder borrowing.
The deal lays the foundation to support the growth in shareholder value planned for the next five years.
It also confirms that 12.7 per cent of the company’s value will be ring-fenced to distribute to employees in the event of a future sale.
The business is growing ahead of the UK travel market.
Expanding organically and through acquisitions (which include Chauntry Corporation and the well-known brand Purple Parking) this growth will include new locations across Europe and an evolved product offering, both of which will be unveiled later this year.
Matthew Pack, group chief executive of Holiday Extras, said: “Today marks an exciting milestone in Holiday Extras’ development as we set the stage for the future by strengthening the ownership and value of our business, and putting in place an exciting development plan for the next five years.
“Holiday Extras’ experienced management team and dedicated staff are crucial to our future success, and I’m delighted that there is now a robust mechanism in place to share the value of the company with them.”
The company has a proven technology track record.
It employs over 100 software engineers, data engineers and data scientists, and was last year one of the first businesses to embrace ‘one-click buying’ following the expiry of the Amazon patent.